Please refer to attached statement.

1. What is the total income tax expense the Company recognized in 2007?
2. Calculate effective tax rate in 2007.
3. Briefly explain why depreciable, amortizable and other property give rise to deferred tax liabilities.
4. During 2007, which was greater, expenses in income statement associated with depreciable, amortizable, and other property Or deductions in the tax report that are associated with depreciable, amortizable, and other property? By how much? Estimate using 35% tax rate.
5. What was the effect of valuation allowance on the income statement for 2007?

2007 2006 2005 Income From Continuing Operations Before Income Taxes Domestic (including U.S. exports) S 7,344 4.983 S 3,500 Foreign subsidiaries 381 341 311 7,725 $ 5.324 $ 3.811 Income Tax (Benefit) Provision Current Federal 2,368 $ 1,612 S 1,078 State 303 125 163 Foreign 330 243 221 3.001 1.980 1,462 Deferred Federal (118) (182) (253) State (9) 39 (35) (127) (143) (288) 2,874 $ 1.837 $ 1,174 September 29, September 30, 2007 2006 Components of Deferred Tax Assets and Liabilities Deferred tax assets Accrued liabilities S (1,153) (1,120) Foreign subsidiaries (526) (674) Equity-based compensation (303) (259) Other, net (37) Total deferred tax assets (2,019) (2,053) Deferred tax liabilities Depreciable, amortizable and other property 3,286 3,470 Licensing revenues 340 404 Leveraged leases 50 96 Other, net 38 Total deferred tax liabilities 3,676 4,058 Net deferred tax liability before valuation allowance 1,657 2,005 Valuation allowance 54 54 Net deferred tax liability $ 1,711 $ 2.059